Reyna Silver Amends Terms of Medicine Springs Option Agreement

Rhea-AI Summary

Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) has amended the terms of its option agreement for the Medicine Springs project in Nevada, USA. The amendment, dated September 30, 2024, modifies the payment schedule with the Optionors, Stephen Sutherland and Herb Duerr. Key changes include:

1. A USD$15,000 cash payment on October 1, 2024
2. Deferral of a USD$150,000 cash payment from October 1, 2024, to February 1, 2025
3. Addition of USD$10,000 in Reyna Silver common shares, payable by February 1, 2025

The revised schedule now requires mandatory payments of USD$150,000 in cash and USD$310,000 in common shares by February 1, 2025. Optional payments include USD$225,000 in cash by February 1, 2025, and USD$150,000 in cash by October 1, 2025. These amendments are subject to TSXV acceptance.

Positive

• Successful negotiation of more favorable payment terms for the Medicine Springs project option
• Deferral of a significant cash payment (USD$150,000) by four months
• Addition of a share-based payment component, potentially preserving cash

Negative

• Increase in total payment amount due to the addition of USD$10,000 in common shares
• Potential dilution for existing shareholders due to the issuance of new common shares

VANCOUVER, BC and HONG KONG / ACCESSWIRE / October 8, 2024 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna Silver") is pleased to announce that it has reached an agreement to further amend the terms of its option agreement dated August 20, 2017 (as previously amended, the "Option Agreement") with Stephen Sutherland and Herb Duerr (collectively, the "Optionors"), pursuant to which Reyna Silver has the option to acquire a 100% interest in the Optionors´ Medicine Springs project located in Nevada, USA (the "Property"). The Option Agreement was initially entered into between the Optionors and Northern Lights Resources Corp. ("NLR"). Reyna Silver acquired and assumed NLR´s interest in the Option Agreement and the underlying Property pursuant to an option interest acquisition agreement dated December 14, 2022 (the "Acquisition Agreement"), between NLR and Reyna Silver. Further details of the Acquisition Agreement are disclosed in Reyna Silver's news releases dated December 15, 2022 December 15, 2022 and January 5, 2023. Reyna Silver has announced previous amendments to the Option Agreement, including most recently on February 13, 2024. The amendments to the Option Agreement were effected by an Amending Agreement dated September 30, 2024 between the Optionors and Reyna Silver (the "Amending Agreement").

"We greatly appreciate the faith in the Medicine Springs Project demonstrated by Herb Duerr and Stephen Sutherland," said Jorge Ramiro Monroy, CEO of Reyna Silver Silver. "As seasoned Nevada geologists, they clearly appreciate what our district-scale exploration approach can bring to unlock a project's potential."

For a cash payment of USD$15,000 on October 1, 2024, the Amending Agreement defers the October 1, 2024 USD$150,000 cash payment to February 1, 2025 and adds USD$10,000 in additional common shares of Reyna Silver payable on or before February 1, 2025 to the Optionors. As a result of the Amending Agreement, the remaining mandatory and option payments required under the Option Agreement for Reyna Silver to fully exercise its option on the Property are as follows:

Mandatory Payments:

• On or before February 1, 2025: USD$150,000 in cash; and

• On or before February 1, 2025: USD$310,000 in common shares of Reyna Silver (based on the 30-day VWAP of Reyna Silver´s common shares on the TSV Venture Exchange prior to the date of issuance subject to a floor price of CAD$0.12375 per common share).

Option Payments:

• On or before February 1, 2025: USD$225,000 in cash; and

• On or before October 1, 2025: USD$150,000 in cash.

The Amending Agreement and the issuance of Reyna Silver common shares under the Option Agreement remain subject to the acceptance of the TSXV.

For Further Information, Please Contact:

Reyna Silver Corp.
Jorge Ramiro Monroy
Chief Executive Officer
T: +1 (778) 504-1344
E: info@reynasilver.com

www.reynasilver.com

About Reyna Silver Corp.

Reyna Silver is a growth-oriented junior exploration and development company. Reyna Silver focuses on exploring for high-grade, district-scale silver deposits in Mexico and the United States. In Nevada USA, Reyna Silver has entered into an option to acquire 70% of the 12,058-hectare "Gryphon Summit Project" in a 50/50 partnership with Reyna Gold. The Gryphon Project shows features indicating uniquely superimposed/overprinted Silver-Lead-Zinc-Copper Carbonate Replacement (CRD), Carlin Gold and Critical Metals mineralization. Also in Nevada, Reyna Silver is advancing its option to acquire 100% of the "Medicine Springs Project" where Reyna Silver is exploring a potentially significant Silver-Lead-Zinc-Copper CRD-skarn-Porphyry system. Reyna Silver's Mexican assets are 100% owned and include the "Guigui Project" and "Batopilas Project", both located in Chihuahua State. The Guigui Project covers the interpreted source area for the Santa Eulalia Carbonate Replacement Deposit District and Batopilas covers most of Mexico's historically highest-grade silver system.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the Option Agreement and the Amending Agreement; the ability of the Reyna Silver to fully earn-in to the option, the ability of Reyna Silver to receive TSXV approval of the Amending Agreement, the business and operations of the Reyna Silver and the exploration of the Property. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the uncertainties surrounding the mineral exploration industry. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Reyna Silver disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Reyna Silver Corp.

View the original press release on accesswire.com

FAQ

What are the new payment terms for Reyna Silver's (RSNVF) Medicine Springs project option?

The new terms include a USD$15,000 cash payment on October 1, 2024, deferral of a USD$150,000 cash payment to February 1, 2025, and an additional USD$10,000 in Reyna Silver common shares payable by February 1, 2025.

When does Reyna Silver (RSNVF) need to make the mandatory payments for the Medicine Springs project?

Reyna Silver must make mandatory payments of USD$150,000 in cash and USD$310,000 in common shares by February 1, 2025.

What are the optional payments in Reyna Silver's (RSNVF) amended Medicine Springs agreement?

The optional payments include USD$225,000 in cash by February 1, 2025, and USD$150,000 in cash by October 1, 2025.

Who are the Optionors in Reyna Silver's (RSNVF) Medicine Springs project agreement?

The Optionors in the Medicine Springs project agreement are Stephen Sutherland and Herb Duerr.